– by New Deal democrat
The new parsimony
I came across the below graph showing that relationship of average household net worth with average debt vs. the personal savings rate from the NY Fed last week (h/t The Conversable Economist):
The important point was that the relationship has changed since the Great Recession. Even though there has been a big increase in average household net worth thanks in particular to the rebound in house prices, the personal savings rate remains elevated compared with its prior history.
This is evidence of something President Obama said during a recent interview, namely, that “Some people are still recovering from the trauma of what happened in 2007-2008,”